Financial Instruments |
6 Months Ended |
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Jun. 30, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Financial Instruments | FINANCIAL INSTRUMENTS Currency Hedging Instruments The Company uses foreign currency forward and cross-currency swap contracts to manage the risks associated with currency exchange rate exposures. In the second quarter of 2026, the Company entered into cross-currency swaps with gross notional amounts totaling $100.0 million maturing in July 2032. These instruments were designated as a net investment hedge of a Euro functional currency denominated subsidiary. Periodic swap interest accruals are recognized in Net earnings and changes in the fair value of the swaps are recorded in Accumulated other comprehensive loss as a component of Currency translation. The Company determined the hedge to be effective at inception of the hedge relationship and will assess effectiveness quarterly thereafter by ensuring the net investment in the associated Euro functional currency denominated subsidiaries is greater than the derivative notional amount. As of June 30, 2026, the fair value of the cross-currency swaps was $0.3 million within Other noncurrent liabilities in the Condensed and Consolidated Balance Sheets. Net investment hedges are used to hedge the foreign currency risk of net investments in foreign operations. Cash flows upon settlement of a net investment hedge and for periodic interest received or paid are classified as investing activities in the Condensed and Consolidated Statements of Cash Flows. Recognition in earnings of amounts previously recognized in Accumulated other comprehensive loss is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. In the event of a complete or substantially complete liquidation of the net investment, cash flows from net investment hedges are classified as investing activities in the Condensed and Consolidated Statements of Cash Flows. The gross notional amount of the Company’s currency derivatives was $341.4 million and $320.1 million at June 30, 2026 and December 31, 2025, respectively. Neither the fair values of currency derivatives, which are determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily observable (Level 2 inputs under the fair value hierarchy described in Note 11), nor the balances included in Accumulated other comprehensive loss were material as of June 30, 2026 or December 31, 2025. Currency derivatives did not have a material impact to Net earnings, Other comprehensive income, or the Condensed and Consolidated Statements of Cash Flows during the six months ended June 30, 2026 and 2025, nor is the amount to be reclassified into Net earnings over the next 12 months expected to be material. At June 30, 2026, the maximum term of the Company’s foreign currency forward contracts was less than one year, and the term of the Company’s cross-currency swaps was six years. Concentration of Credit Risk The counterparties to the Company’s forward contracts and cross-currency swaps consist of several investment grade major international financial institutions. The Company could be exposed to losses in the event of nonperformance by the counterparties. However, the credit ratings and the concentration of risk in these financial institutions are monitored on a continuous basis, and therefore, the Company believes they present no significant credit risk to the Company.
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